Latest 401k Articles

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  • Common Files

    Free 401k Retirement Calculators

    To access the free 401k Retirement Calculator, go here. Here is a snapshot of the calculator:

    Notes from the 401k Calculator:

    - Your payments or contributions are made at the END of the periods.

    - The maximum 401k contributions per year that you are allowed to make are controlled by the IRS. For example, the maximum 401k contributions for the year 2006 are $15000. Go here to learn more about the maximum 401k contributions. The calculator is not functioned to determine whether you are over contributing money or not.

    - The final numbers generated are rounded off and only approximations, and should only be used as a guide.

    Sample Calculations:

    - Current 401k Balance: $30,000

    - Current Annual Income: $40,000

    - Expected Annual Salary Increase: 3% (this means your salary or Gross Wage goes up by 3% each year)

    - Percent of Salary Withheld for 401k: 5% (this is the annual percentage of your salary that goes towards making 401k contributions). You can change it from monthly, quarterly, semi-annually, annually, etc.

    - Employer Match: 100% and 5% (this is the percentage amount that your employer contributes towards your 401k plan every year. Your employer will therefore contribute 100% of a maximum of 5% of your annual salary. You can change it from monthly, quarterly, semi-annually, annually, etc).

    - Years to Fund: 8 years (this is the # of years you would like your 401k retirement savings to grow).

    - Average Annual Interest Rate Earned: 5% (this is how much interest rate compounded annually that your contributions earn).

    Press View Schedule

    Fund 401(k) for 8 years
    Annual Income of $ 40,000.00- increasing 3% per year
    Beginning Balance= $ 30,000.00
    Contribute 5% of Salary -Invested Annually
    Your Employer will match 100% up to 5% of salary - Annually
    Annual Interest Rate = 5% - Compounded Annually

    Year Beginning Balance You Contribute Employer Contributes Earnings Ending Balance
    1 $30,000 $2000 $2000 $1500 $35,500
    2 $35,500 $2060 $2060 $1775 $41,395
    3 $41,395 $2,121.80 $2,121.80 $2,069.75 $47,708.35
    4 $47,708.35 $2,185.45 $2,185.45 $2,385.42 $54,464.68
    5 $54,464.68 $2,251.02 $2,251.02 $2,723.23 $61,689.94
    6 $61,689.94 $2,318.55 $2,318.55 $3,084.50 $69,411.54
    7 $69,411.54 $2,388.10 $2,388.10 $3,470.58 $77,658.32
    8 $77,658.32 $2,459.75 $2,459.75 $3,882.92 $86,460.74
    Totals:   $17,784.67 $17,784.67 $20,891.39  
     

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